E-Commerce: How Swiss Online Shops Benefit from eBill

E-Commerce: How Swiss Online Shops Benefit from eBill

Jan 6, 2025 6 minutes

In the e-commerce market, administrative costs, security considerations, and complicated processes are putting pressure on margins of Swiss online shops. Read on to discover why eBill E-Commerce can be an efficient, secure, and user-friendly alternative for Swiss e-commerce merchants, and how it contributes to customer loyalty.

Table of Contents

How Does eBill E-Commerce Work?

The e-commerce market in Switzerland is highly competitive. Swiss online shops are confronted with high payment processing costs, increasing competition from low-cost foreign providers, and consolidation in the domestic market. Cost pressure in the sector is palpable, and the environment is challenging, particularly for smaller online shops.

Smooth Payment Processing as the Key Criterion in Online Shopping

Another challenge is the increase in customer expectations resulting from advancing digitalization. In the E-Commerce Trend Indicator 2024, produced by Swiss Post and the Zurich University of Applied Sciences in Business Administration, some 89% of Swiss consumers reported that efficient payment processing was the key criterion in online shopping. This is why Swiss online shops work continuously to improve efficiency and processes, particularly with regard to payment transactions.

Reasons for Cart Abandonment in E-Commerce

The checkout process in the shopping cart is among the key customer interfaces of online shops. Every click here counts. Whether the fast checkout or the step-by-step process is more effective when purchasing online since it is easier to complete is a matter of hefty debate among online retailers.

From a customer perspective, there are various reasons for abandoning a purchase. They include: no delivery to Switzerland, hidden costs, high delivery fees, the preferred payment option not being available, and an uneasy feeling regarding the shop’s online security. The increased caution isn’t surprising, as phishing attempts, fake invoices, and other scams have increased in recent years. 

Completion of Purchase: TWINT, Credit Card, Invoice, or Debit Card?

Customers expect a straightforward purchase process. In order to meet these expectations, Swiss online shops offer up to 15 different payment methods, all of which have their advantages and disadvantages. Here are some of the most popular ones:

  • TWINT and Credit Cards: When it comes to payment preferences, the study shows that – among those 34 and under – TWINT (81%) is the most popular form of payment, followed by credit cards (72%). These payment methods offer a quick and straightforward payment transaction without requiring online shops to take additional steps such as sending payment reminders.
  • Invoice via E-mail: Among the Swiss, the invoice is the third-most popular method of payment. According to the study Future of Billing, conducted by the Lucerne University of Applied Sciences and Arts in collaboration with SIX, 65% of respondents living in Switzerland prefer the invoice over other methods of payment. By comparison, sending invoices by e-mail is cheaper for Swiss online shops, but it does generate additional administrative work – for example, reminders – in cases involving late or missing payments. 
  • Debit Cards: Meanwhile, the latest generation of debit cards also enables e-commerce transactions, offering a straightforward and secure method of payment. Debiting occurs directly from the user’s account, which is also advantageous for the retailer since it minimizes any potential payment defaults.

Is There an E-commerce Payment Method That Combines Efficiency and Security?

In Switzerland, more and more people are relying on the eBill digital invoice. At the end of September 2024 there were more than 3.5 million registered eBill users. With eBill, invoices are received directly in the user’s online banking application. That reduces cost and effort for both the invoice issuer and the recipient, as well as increases security. But how do eBill and e-commerce fit together?

One-Off Payments with eBill, Is That Possible?

eBill E-Commerce is the new, user-friendly, and secure solution for payments in online shops. It combines the advantage of eBill with the “payment on account” payment method. After customers have placed all their items in the shopping cart in the online shop, they select eBill as their payment option and the invoice is sent directly to their online banking application.

Market Potential and Opportunities of eBill E-Commerce

SIX estimates that with the implementation of eBill E-Commerce, Swiss online retailers who currently offer the invoice payment option could process a significant number of transactions (invoices) annually via eBill. Once a biller has incorporates eBill, this increases the likelihood that customers will continue to order from this provider in the future. Moreover, eBill E-Commerce addresses numerous challenges faced by Swiss online shops and, thanks to several advantages, has the potential to deliver long-term improvement of payment transactions. 

4 Reasons Why Online Shops Benefit from eBill E-Commerce

 

1. eBill Offers an Efficient Alternative

According to the Future of Billing study, in comparison to traditional payment methods, eBill is the most efficient option for invoice issuers since costs for materials, fees for cash deposits at the post office counter, and rejection fees don’t apply, and reminder fees are low.  For card payments, the invoice receipt must also be sent to the customer by post or e-mail, while in the case of eBill the issuing of the receipt is already integrated within the application.

2. eBill E-Commerce Ensures Greater Security During the Payment Process

eBill E-Commerce offers a more secure platform that is integrated within the customer’s online banking application. The invoice issuer has already been verified with eBill. Invoices appear in the purchaser’s online banking application, and can be reviewed and paid there without them having to re-enter the payment information again. This reduces the risk of phishing and generates greater confidence in the payment process.

3. eBill Reduces Payment Defaults and Delays

eBill E-Commerce minimizes the risk of payment defaults. Compared with paper and e-mail invoices, eBill invoices are paid more reliably. The invoice due date specified by the company is transferred as a suggestion into the recipient’s online banking application. Thus, customers only have to approve the invoice in the online banking application, increasing the probability that the payment arrives on time. In addition, this reduces the number of reminders that need to be sent since automated payment reminders don’t end up in the recipient’s spam folder.

4. eBill E-Commerce Increases User-Friendliness in the Payment Process

E-Commerce offers a very user-friendly payment solution. Customers can view their bills – even single payments - in their online banking application, and make payments with just a few clicks. The straightforward and intuitive nature of eBill E-Commerce improves customer experience and increases the probability the order will be completed. Since manual entry of payment information isn’t required, errors during payment processing are rare. This simplifies and accelerates the payment process, which benefits all parties involved.

eBill – The Future of Payment Transactions in the Swiss E-Commerce Market?

In times where cost efficiency, security, automation, and user-friendliness are pivotal to the success or failure of online shops, the implementation of eBill E-Commerce paves the way to the future of e-commerce. Swiss online shops benefit from an efficient and user-friendly solution that simplifies their processes, lowers their operating costs, and improves competitiveness.

Activate eBill E-Commerce Now

Has your online shop not yet switched to eBill E-Commerce? Save costs, enhance security and user-friendliness, and reduce hassle in the payment process with eBill E-Commerce. Contact your payment service provider now, or click on this link and go to a network partner of your choosing.

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